Consumers on Edge: Understanding The Changing Dynamics of Consumer Purchase Deci

U.S. consumers are on edge.  Faced with unemployment higher than at the peak of the Great Recession, a record-breaking decline in GDP, a toxic political atmosphere, and a global pandemic, it is no wonder that consumer behavior has changed.  Yet, they remain hopeful.

Customers are still buying, and consumers are still consuming.  They are just doing so differently.  To better understand how purchase decision making has changed because of the pandemic, we asked U.S. consumers about their purchase decision drivers, household economics, consumption behaviors, and views on brands taking a stand on racial justice.  Individual decision driver questions were focused on the consumer packaged goods (CPG) industry as those brands should be more top of mind due to a high purchase frequency, recent product shortages, and calls for boycotts.  Please note, we delineated between customers (people who buy) and consumers (the overall market) to better convey how individual insights apply.

Despite this CPG focus, we believe how and why decision making has changed may very well be applicable to general retail, apparel, dining, and other industries.  The new engagement behaviors and household fiscal reactions to Covid-19, and the ensuing recession, provide valuable insights far beyond the consumer space.

This new research demonstrates:

• How large a role the risks associated with Covid-19 plays in purchase decision making
• The rising importance of the convenience decision driver
• The scale of forced and budget-driven brand switching
• Changes to household spending behavior
• Rapid shifts in engagement behaviors
• The impact of brands taking a stance on racial justice